225 lines
12 KiB
ReStructuredText
225 lines
12 KiB
ReStructuredText
==========================
|
||
Analytic account use cases
|
||
==========================
|
||
|
||
The analytic accounting can be used for several purposes:
|
||
|
||
- analyse costs of a company
|
||
|
||
- reinvoice time to a customer
|
||
|
||
- analyse performance of a service or a project
|
||
|
||
To manage analytic accounting, you have to activate it in
|
||
:menuselection:`Configuration --> Settings`:
|
||
|
||
.. image:: media/usage01.png
|
||
:align: center
|
||
|
||
To illustrate analytic accounts clearly, you will follow three use
|
||
cases, each in one of three different types of company:
|
||
|
||
1. Industrial company: Costs Analyse
|
||
|
||
2. Law Firm: reinvoice spent hours
|
||
|
||
3. IT/Services Company: performance analysis
|
||
|
||
Case 1: Industrial company: Costs Analyse
|
||
-----------------------------------------
|
||
|
||
In industry, you will often find analytic charts of accounts structured
|
||
into departments and products the company itself is built on.
|
||
|
||
The objective is to examine the costs, sales and margins by
|
||
department/resources and by product. The first level of the structure
|
||
comprises the different departments, and the lower levels represent the
|
||
product ranges the company makes and sells.
|
||
|
||
**Analytic Chart of Accounts for an Industrial Manufacturing Company**:
|
||
|
||
1. Marketing Department
|
||
|
||
2. Commercial Department
|
||
|
||
3. Administration Department
|
||
|
||
4. Production Range 1
|
||
|
||
5. Production Range 2
|
||
|
||
In daily use, it is useful to mark the analytic account on each purchase
|
||
invoice. When the invoice is approved, it will
|
||
automatically generate the entries for both the general and the
|
||
corresponding analytic accounts. For each entry on the general
|
||
accounts, there is at least one analytic entry that allocates costs to
|
||
the department which incurred them.
|
||
|
||
Here is a possible breakdown of some general accounting entries for the
|
||
example above, allocated to various analytic accounts:
|
||
|
||
+---------------------------------------+-----------+---------+----------+----+-------------------------+----------+
|
||
| **General accounts** | | | | | **Analytic accounts** | |
|
||
+=======================================+===========+=========+==========+====+=========================+==========+
|
||
| **Title** |**Account**|**Debit**|**Credit**| | **Account** |**Value** |
|
||
+---------------------------------------+-----------+---------+----------+----+-------------------------+----------+
|
||
| Purchase of Raw Material | 2122 | 1500 | | | Production Range 1 | -1 500 |
|
||
+---------------------------------------+-----------+---------+----------+----+-------------------------+----------+
|
||
| Subcontractors | 2122 | 450 | | | Production Range 2 | -450 |
|
||
+---------------------------------------+-----------+---------+----------+----+-------------------------+----------+
|
||
| Credit Note for defective materials | 2122 | | 200 | | Production Range 1 | 200 |
|
||
+---------------------------------------+-----------+---------+----------+----+-------------------------+----------+
|
||
| Transport charges | 2122 | 450 | | | Production Range 1 | -450 |
|
||
+---------------------------------------+-----------+---------+----------+----+-------------------------+----------+
|
||
| Staff costs | 2121 | 10000 | | | Marketing | -2 000 |
|
||
+---------------------------------------+-----------+---------+----------+----+-------------------------+----------+
|
||
| | | | | | Commercial | -3 000 |
|
||
+---------------------------------------+-----------+---------+----------+----+-------------------------+----------+
|
||
| | | | | | Administrative | -1 000 |
|
||
+---------------------------------------+-----------+---------+----------+----+-------------------------+----------+
|
||
| | | | | | Production Range 1 | -2 000 |
|
||
+---------------------------------------+-----------+---------+----------+----+-------------------------+----------+
|
||
| | | | | | Production Range 2 | -2 000 |
|
||
+---------------------------------------+-----------+---------+----------+----+-------------------------+----------+
|
||
| PR | 2122 | 450 | | | Marketing | -400 |
|
||
+---------------------------------------+-----------+---------+----------+----+-------------------------+----------+
|
||
|
||
The analytic representation by department enables you to investigate the
|
||
costs allocated to each department in the company. The analytic chart of
|
||
accounts shows the distribution of the company's costs using the example above:
|
||
|
||
.. image:: media/usage02.png
|
||
:align: center
|
||
|
||
In this example of a hierarchical structure in Odoo, you can analyse not
|
||
only the costs of each product range, but also the costs of the whole
|
||
production. A report that relates both general accounts and analytic
|
||
accounts enables you to get a breakdown of costs within a given
|
||
department.
|
||
|
||
.. image:: media/usage03.png
|
||
:align: center
|
||
|
||
The examples above are based on a breakdown of the costs of the company.
|
||
Analytic allocations can be just as effective for sales. That gives you
|
||
the profitability (sales - costs) of different departments.
|
||
|
||
This analytic representation by department is generally used by trading
|
||
companies and industries.
|
||
|
||
A variantion of this, is not to break it down by sales and marketing
|
||
departments, but to assign each cost to its corresponding product range.
|
||
This will give you an analysis of the profitability of each product
|
||
range.
|
||
|
||
Choosing one over the other depends on how you look at your marketing
|
||
effort. Is it a global cost allocated in some general way, or is each
|
||
product range responsible for its own marketing costs?
|
||
|
||
Case 2: Law Firm: costs of human resources?
|
||
-------------------------------------------
|
||
|
||
Law firms generally adopt management by case, where each case represents
|
||
a current client file. All of the expenses and products are then
|
||
attached to a given file/analytic account.
|
||
|
||
A principal preoccupation of law firms is the invoicing of hours worked,
|
||
and the profitability by case and by employee.
|
||
|
||
Mechanisms used for encoding the hours worked will be covered in detail
|
||
in timesheet documentation. Like most system processes, hours worked are
|
||
integrated into the analytic accounting. In the employee form, specify
|
||
the cost of the employee. The hourly charge is a function of the
|
||
employee's cost.
|
||
|
||
So a law firm will opt for an analytic representation which reflects the
|
||
management of the time that employees work on the different customer
|
||
cases.
|
||
|
||
Billing for the different cases is a bit unusual. The cases do not match
|
||
any entry in the general account nor do they come from purchase or sales
|
||
invoices. They are represented by the various analytic operations and do
|
||
not have exact counterparts in the general accounts. They are calculated
|
||
on the basis of the hourly cost per employee.
|
||
|
||
At the end of the month when you pay salaries and benefits, you
|
||
integrate them into the general accounts but not in the analytic
|
||
accounts, because they have already been accounted for in billing each
|
||
account. A report that relates data from the analytic and general
|
||
accounts then lets you compare the totals, so you can readjust your
|
||
estimates of hourly cost per employee depending on the time actually
|
||
worked.
|
||
|
||
The following table shows an example of different analytic entries that
|
||
you can find for your analytic account:
|
||
|
||
+--------------------------------+------------------+--------------+----+----------------------------+-------------+--------------+
|
||
| **Title** | **Account** | **Amount** | | **General Account** | **Debit** | **Credit** |
|
||
+================================+==================+==============+====+============================+=============+==============+
|
||
| Study the file (1 h) | Case 1.1 | -15 | | | | |
|
||
+--------------------------------+------------------+--------------+----+----------------------------+-------------+--------------+
|
||
| Search for information (3 h) | Case 1.1 | -45 | | | | |
|
||
+--------------------------------+------------------+--------------+----+----------------------------+-------------+--------------+
|
||
| Consultation (4 h) | Case 2.1 | -60 | | | | |
|
||
+--------------------------------+------------------+--------------+----+----------------------------+-------------+--------------+
|
||
| Service charges | Case 1.1 | 280 | | 705 – Billing services | | 280 |
|
||
+--------------------------------+------------------+--------------+----+----------------------------+-------------+--------------+
|
||
| Stationery purchase | Administrative | -42 | | 601 – Furniture purchase | 42 | |
|
||
+--------------------------------+------------------+--------------+----+----------------------------+-------------+--------------+
|
||
| Fuel Cost -Client trip | Case 1.1 | -35 | | 613 – Transports | 35 | |
|
||
+--------------------------------+------------------+--------------+----+----------------------------+-------------+--------------+
|
||
| Staff salaries | | | | 6201 – Salaries | | 3 000 |
|
||
+--------------------------------+------------------+--------------+----+----------------------------+-------------+--------------+
|
||
|
||
Such a structure allows you to make a detailed study of the
|
||
profitability of various transactions.
|
||
|
||
For more details about profitablity, please read the following document:
|
||
:doc:`timesheets`
|
||
|
||
But analytical accounting is not limited to a simple analysis of the
|
||
profitability of different customer. The same data can be used for
|
||
automatic recharging of the services to the customer at the end of the
|
||
month. To invoice customers, just link the analytic account to a sale
|
||
order and sell products that manage timesheet or expenses .
|
||
|
||
Case 3: IT Services Company: perfomance analysis
|
||
------------------------------------------------
|
||
|
||
Most IT service companies face the following problems:
|
||
|
||
- project planning,
|
||
|
||
- invoicing, profitability and financial follow-up of projects,
|
||
|
||
- managing support contracts.
|
||
|
||
To deal with these problems, you would use an analytic chart of accounts
|
||
structured by project and by sale order.
|
||
|
||
The management of services, expenditures and sales is similar to that
|
||
presented above for lawyers. Invoicing and the study of profitability
|
||
are also similar.
|
||
|
||
But now look at support contracts. These contracts are usually limited
|
||
to a prepaid number of hours. Each service posted in the analytic
|
||
accounts shows the remaining hours of support. To manage support
|
||
contracts, you would create a product configured to invoice on order and
|
||
link the sale order to an analytic account
|
||
|
||
In Odoo, each analytic line lists the number of units sold or used, as
|
||
well as what you would usually find there – the amount in currency units
|
||
(USD or GBP, or whatever other choice you make). So you can sum the
|
||
quantities sold and used on each sale order to determine whether any
|
||
hours of the support contract remain.
|
||
|
||
Conclusion
|
||
----------
|
||
|
||
Analytic accounting helps you to analyse costs and revenues whatever the
|
||
use case. You can sell or purchase services, track time or analyse the
|
||
production performance.
|
||
|
||
Analytic accounting is flexible and easy to use through all Odoo
|
||
applications (sales, purchase, timesheet, production, invoice, …).
|